CALL ON MINING SHARES.

Dominion, Volume 3, Issue 893, 12 August 1910, Page 8

CALL ON MINING SHARES.

AN INTERESTING . CASE. . (By Telegraph.—Prcßs Association.) Auckland, August U.** A matter of general interest to mining oompanies was involved in • an appeal brought in the* Supremo Court to-day by, the Kapanga Gold Mining Company against a, decision given by Jtr. Kettle. 8.U., in tho Magistrate's Court at Auckland in connection, with a claim by the company for tho rccovory of £14 3s. 4d. from Mrs.< 'Margaret T. A. Bfidson, of Coromandel. this being tho amount of a first call of 2d. pcrr shaTe on 17,000 shares. Mr. Kettle, gave judgment for plaintiff with costs, £1 Is. • .

The . company appealed on a question of law, and. Mi*. Hanjia {for appellants) pointcd out that,the magistrate held, in giving his decision, that, under Section 352 of tho Companies Act, proceedings for tho i-ccovery of a call in a mining company must'be instituted within fourteen days;otherwise the remedy against tho shareholders was absolutely gone; secondly, that the shares, having been forfeited and offered for sale, but not sold, there was ; no balanco to bo recovered. It was argued that both those conclusions were wrong. Counsel <?oiitcndcd that "Section '352 of tho Companies-Act'-.did not,make it obligatory on* .the plaintiff company ■ to issuo proceedings for" 1 recovery- of a' call within fourteen days after tho paU,

bocarno payable, but the power to sue at' any 'time was discretionary. The interpretation . of Section J57 of the Act, Mr. Hanna argued, was in the' direction' of' the defaulting shareholders being liablo for the amount of a call and expenses in the event of the forfeited shares not realking, at public auction, the total sum due.. Several judgments on the point were quoted.

Mr. Stanton, for respondent, argued that, when shares were once forfeited, tho company lost its right to sue, and the only subsequent power was to proceed under Section 357 of tho Act for the recovery, of a balance, but not for a call. He congilded further that tho intention of the Legislature had to bo reviewed, and, when this was done, it was clear that the magistrate had decided correctly in tho original claim. - . llis Honour reserved decision. BOSS GOLDFIEIjDS. MISHAP AT, THE MIKE. I (By Telegraph.—Press Association.! Hokltika, August 11. ' A special general meeting of shareholders in tho Ilops Goldflelds, Ltd., will bo held at Wellington about the end of the present - month. The directors intend to propose to tho shareholders that owing to tho financial position of the company the sum of £15,000 should be raised in order to carry on operations. In the meantime tho directors have • advanced £1000 to pay pressing liabilities. Dr. Neeley, formerly chairman of directors, has resigned owing to tho fact that he does not hold the necessary qualifications in regard to tho number "of shares in the company. Mr. J. Grimmond lias been appointed in his stead, and before he proceeds to Wellington he will ascertain tho. feeling of tho local shareholders as to the raising of further capital to continue operations. '

At 10.30 p.m. to-night the Ross correspondent of tho "West Coast Times" telephoned that' owing to ■ a mishap to the lino which transmits the electrical power to the: workings,, of tho.Ross Goldflelds, the current was suddenly cut off, - with the result that the mine soon began to flood. Unfortunately one of the two motors used for driving the main pumps could not be brought out in time, and it ig now trader water on the 350 ft. level. Tho men were engaged getting the other motor out of the shaft, and by 12 o'clock to-night it is expected to be safe. It will probably take about a fortnight to again unwater tho mine, and when this is, accomplished the same time will bo occupied in thoroughly drying the motor before it can be of any use. The sinking pumps will have to again be put into the shaft to unwater the ground. About sirty men will bo thrown , out of work.

A meeting of the directors will bo held on Saturday.